Will data centers be built in closed mines? The world's largest coal producer has a plan.

• Coal India, the world's largest coal producer, is considering setting up data centers in closed mines to boost its digital capabilities.
• Four mine sites have been selected for a feasibility study, with the aim of sustainably utilising the assets while supporting Digital India and Make in India initiatives.
• The company aims to leverage existing infrastructure to meet India's growing demand for digital resources while promoting sustainable development.

The state-owned mining company has already taken steps to conduct a comprehensive feasibility study.

The study will assess the viability of data centers in India, with a particular focus on the redevelopment of closed Coal India mines. It will include site assessment, comparative analysis, and preparation of a pre-feasibility report for the most suitable locations.

As Reuters points out, the study will also include an analysis of the data center industry in India, as well as factors driving demand such as digitization, artificial intelligence and the implementation of 5G technology.

The initiative aims to transform brownfield sites, such as mines. Coal India representatives point out that the project aligns with India's Digital India and Make in India missions, while also optimally utilizing redundant post-mining resources to develop high-value infrastructure.

At the same time, the company is exploring other options for developing closed coal mines, such as eco-parks or mining tourism areas.

According to industry estimates, the data centre sector in India is expected to attract new investments worth $20-25 billion in the next five to six years, reflecting the growing demand for digital infrastructure.

The final feasibility report of the Coal India initiative is expected in the third quarter of fiscal year 2026, and the project could set a precedent for the sustainable use of mining assets in India.

Coal India Limited is an Indian state-owned enterprise and the world's largest coal producer, established in 1975. It has strategic importance, supplying the majority of India's coal and playing a key role in the country's energy security.